An information cascade occurs when: A) the buyer of a good has ...

[DyllonKazuo]

An information cascade occurs when:
 
  A) the buyer of a good has more information than the seller and takes hidden actions.
  B) the seller of a good has more information about the hidden characteristics of the good.
  C) people make the same decisions as others without focusing on private information.
  D) people have contradictory information about a good they want to consume.

Question 2

Could pollution be eliminated by banning all activities harmful to the environment?
 
  A) No, because legislation is influenced by industrial lobbyists.
  B) No, because the cost of doing so would be higher than even the most dedicated environmentalist would agree to accept.
  C) Not until we have better information on the sources of pollution.
  D) Yes, if we are willing to place long-run considerations ahead of short-run profits.

[marict]

Answer to Question 1

C

Answer to Question 2

B

[DyllonKazuo]

Wow, this really help

[chereeb]

Thanks for the timely response, appreciate it